Military deals worth $110 bn inked with Saudi: US official

The United States on Saturday announced military deals worth nearly $110 billion, during a visit by President Donald Trump to Saudi Arabia.

A White House official said Trump and Secretary of State Rex Tillerson would attend the signing of a memorandum of intent on a package of defense equipment and services to bolster the security of the kingdom and the Gulf region in the face of Iranian threats.

“This package demonstrates, in the clearest terms possible, the United States’ commitment to our partnership with Saudi Arabia and our Gulf partners, while also expanding opportunities for American companies in the region, and supporting tens of thousands of new jobs in the U.S. defense industrial base,” a statement said.

Saudi Aramco will sign initial accords and joint-venture agreements valued at about $50 billion with companies including General Electric, Schlumberger and Halliburton, Chief Executive Officer Amin Nasser told reporters in Riyadh. These companies are “trying to expand their footprint in the kingdom by expanding trade between the two sides,” he said.

“Many of us sitting on the table are overseeing substantial investments in the United States,” Energy Minister Khalid Al-Falih said. “Sabic has a big platform with the acquisition of GE Plastics which they continue to build on.” Other deals will be announced today, he said. AlFalih was speaking as part of a panel at the inaugural Saudi-US CEO Forum, which also included Saudi billionaire Lubna Olayan and Finance Minister Mohammed Al-Jadaan.

The forum opened as Trump started a visit in Saudi Arabia, the world’s biggest crude exporter, on his first overseas trip as president.